1. SUCCESSION PLANNING Are you ready for this?

2. SUCCESSION PLANNING - Are you ready for this?
50 Million!

3. Why Increased Retirements:

4. SUCCESSION PLANNING - Are you ready for this?
70% of companies say they do some form of succession planning, yet
62% say they have too few internal candidates to meet their organizational needs.

5. SUCCESSION PLANNING - Are you ready for this?
What it isn’t and what it is

6. SUCCESSION PLANNING - Are you ready for this?
Emergency Replacement Planning:
Identification of back-ups for your critical positions

7. SUCCESSION PLANNING - Are you ready for this?
Developing the bench strength throughout the organization so when a vacancy occurs, qualified candidates are available within the organization.

8. SUCCESSION PLANNING - Are you ready for this?
Succession Planning: Knowing where you’re heading and developing the talent pool to get you there.

9. Where is the knowledge?
13%
13%
16%
51%
Many times and at higher-level positions, % of the corporate knowledge is in peoples’ heads!!

10. What’s needed for future success?
Assess your talent
What are the gaps?
Develop the talent pipeline
SUCCESSION
MANAGEMENT

11. SUCCESSION PLANNING - Are you ready for this?
The heart of Succession Planning is the evaluation of your employees' performance and potential!

12. SUCCESSION PLANNING - Are you ready for this?
Step 1. What’s needed for future success?
What are the positions that are mission critical to your organization’s future?
What are the competencies needed to be successful in these roles?
That is, what are the knowledge, skills, attitudes, and other abilities that are needed for success in the position.
“What should be” for success

13. SUCCESSION PLANNING - Are you ready for this?
III. COMPETENCIES Competency Definition for an Accountant
Knowledge - Professional
Professional knowledge and skill in accounting and ability to keep current with developments and trends. Knowledge and ability to use applicable information technology and systems to meet work needs.
Financial Monitoring and Analysis
Ability to monitor and collect data and to assess the accuracy and integrity of data. Ability to analyze data. Ability to ensure compliance with applicable standards, rules, regulations, and systems of internal control. Ability to interpret and evaluate results, prepare documentation, and create financial reports and/or presentations.
Decision Making and Problem Solving
Ability to use effective approaches for choosing a course of action or developing appropriate solutions and/or reaching conclusions. Ability to take action consistent with available facts, constraints, and anticipated consequences.
Communication and Interpersonal Skills
Ability to communicate information to individuals or groups and deliver presentations suited to the characteristics and needs of the audience. Ability to clearly and concisely convey information orally or in writing to individuals or groups to ensure that they understand the information and the message. Ability to listen and respond appropriately to others. Ability to establish effective working relationships that foster organizational success.
Supervision
Ability to recruit, select, counsel, discipline, establish performance standards, and evaluate performance of employees to retain a diverse workforce. Ability to administer and ensure compliance with human resources policies and procedures. Ability to monitor and assess work, provide feedback, and provide technical supervision. Ability to develop knowledge, skills, and abilities of employees and plan for and support employees in career development opportunities.

14. SUCCESSION PLANNING - Are you ready for this?
Assess your talent
Inventory of your talent pool.
Who are “high potential” people? “HiPo”
Who are the “high performers”? “HiPer”
How do you do that?

15. Overview of the Performance/Potential Grid - The Nine-Box Grid
What - The matrix is used to evaluate an organization’s talent pool to identify the HiPo’s.
High Performance
Low Potential
Medium Potential
High Performance High Potential
Medium Performance
High Potential
Low Performance Low Potential
Low Performance Medium Potential
Low Performance High Potential
Performance
Potential
for future success in more senior role

16. Prepare for future role / promotion
Valued Specialist
Continue in current role
Emerging Potential
STAR – Top Talent
Emerging Specialist / Consistent Contributor
Improve in current role
Valued
Contributor
Rising Star
Underperformer - Questionable fit
New role or end employment in 3 – 6 months
Misspent talent / At-risk
New to Role/Unrated
Anticipate high performance and potential
Low High
Performance
Prepare for future role / promotion
Low High
Potential for future success in more senior role

17. Talent Review Grid Performance - WHAT
High Performance Within Role
Descriptor: Valued Specialist
Exceeds or Outstanding performance
Role model/SME in their current function
Not likely to move outside current role (e.g., niche job, personal factors, no demonstration of leadership characteristics, etc.)
High Performance/
Med. Demonstrated Leadership
Descriptor: Emerging Potential
Exceeds or Outstanding performance
Role model/SME in current function
Consistently delivers extraordinary results
The person could advance to the next level, but may not be mobile, lack desire to move up, and/or may need coaching in 1 or 2 critical areas
High Performance/
High Demonstrated Leadership
Descriptor: Top Talent
Exceeds or Outstanding performance
Role Model across the organization
Promotable now
Excellent people manager
Very best in all Leadership Characteristics
Med. Performance Within Role
Descriptor: Emerging Specialist/ Consistent Contributor
Meets performance expectations
Steady, consistently good performance
May not fit characteristics of leadership or management model pertaining to upward mobility
Not likely to move outside current role (e.g., niche job, personal factors, full-time status, etc.)
Med. Performance/
Med. Demonstrated Leadership
Descriptor: Valued Contributor
Meets performance expectations
Steady, consistently good performance
Capable of growing into a more complex role within the same level
Demonstrates many of the leadership characteristics
May be promotable outside of current level (laterally or upward)
Med. Performance/
High Demonstrated Leadership
Descriptor: Rising Star
Meets performance expectations
Steady, consistently good performance
In new/challenging role that may currently inhibit ability to exceed performance
Potential to grow into a role with much broader responsibilities
The person likely to advance to next level
Very best in leadership characteristics
Performance - WHAT
Poor Performance Within Role
Descriptor:
Under-Performer/Questionable Fit
Does not meet/partially meets performance expectations
Does not meet Leadership Model criteria in most if not all areas
New team, new role, or new organization decision needs to be made
Low Performance/
Med. Demonstrated Leadership Descriptor: At Risk
Does not meet/partially meets performance expectations
Inconsistent or disappointing performance in relation to leadership characteristics exhibited
Person may be new but isn’t adapting as well as anticipated
Unrated Performance/
Anticipated High Leadership
Descriptor: New to Role
Too early to assess performance or competence… New to the role or the organization
Perceived to be able to take on greater responsibilities/roles and demonstrate all leadership characteristics
Anticipate strong, successful results
Potential - Leadership Characteristics -HOW

18. Talent Review Grid Performance - WHAT
Ready for
next Step
High Performance Within Role
Descriptor: Valued Specialist
Exceeds expectations or outstanding performance
Role model/SME in their current function
Not likely to move outside current role (e.g., niche job, personal factors, no demonstration of leadership characteristics, etc.)
High Performance/
Med. Demonstrated Leadership
Descriptor: Emerging Potential
Exceeds or Outstanding performance
Role model/SME in current function
Consistently delivers extraordinary results
The person could advance to the next level, but may not be mobile, lack desire to move up, and/or may need coaching in 1 or 2 critical areas
High Performance/
High Demonstrated Leadership
Descriptor: Top Talent
Exceeds or Outstanding performance
Role Model across the organization
Promotable now
Excellent people manager
Very best in all Leadership Characteristics
Contribute
In Role
2-5 Years to
Next Step
(lateral or up)
1-2 Years to
Next Step
(lateral or up)
Med. Performance Within Role
Descriptor: Emerging Specialist/ Consistent Contributor
Meets performance expectations
Steady, consistently good performance
May not fit characteristics of leadership or management model pertaining to upward mobility
Not likely to move outside current role (e.g., niche job, personal factors, full-time status, etc.)
Med. Performance/
Med. Demonstrated Leadership
Descriptor: Valued Contributor
Meets performance expectations
Steady, consistently good performance
Capable of growing into a more complex role within the same level
Demonstrates many of the leadership characteristics
May be promotable outside of current level (laterally or upward)
Med. Performance/
High Demonstrated Leadership
Descriptor: Rising Star
Meets performance expectations
Steady, consistently good performance
In new/challenging role that may currently inhibit ability to exceed performance
Potential to grow into a role with much broader responsibilities
The person likely to advance to next level
Very best in leadership characteristics
Performance - WHAT
Poor Performance Within Role
Descriptor:
Under-Performer/Questionable Fit
Does not meet/partially meets performance expectations
Does not meet Leadership Model criteria in most if not all areas
New team, new role, or new organization decision needs to be made
Low Performance/
Med. Demonstrated Leadership Descriptor: At Risk
Does not meet/partially meets performance expectations
Inconsistent or disappointing performance in relation to leadership characteristics exhibited
Person may be new but isn’t adapting as well as anticipated
New
(Six months or less)
in the role
Unrated Performance/
Anticipated High Leadership
Descriptor: New to Role
Too early to assess performance or competence… New to the role or the organization
Perceived to be able to take on greater responsibilities/roles and demonstrate all leadership characteristics
Anticipate strong, successful results
Potential - Leadership Characteristics -HOW

19. Overview of the Performance/Potential Grid - The Nine-Box Grid
Why
1. It’s a simple and cost-effective way to assess any population on two important dimensions 2. It’s a great catalyst for robust dialogue 3. Used in a group setting, it promotes good open debate. The multiple perspectives provide for a much more accurate assessment 4. The process can facilitate a shared sense of ownership for the organizations talent pool 5. It’s a great way to identify development needs and transition to development planning

20. SUCCESSION PLANNING - Are you ready for this?
What are the Gaps?
What are the gaps between what’s needed for each job and the current competencies of the team member.
What’s needed to move the talent to the next level?
Create the development plans for your HiPo and Hi Per staff members.

21. Talent Review Follow-up Plan
Action:
Affirm their role model/SME function
Assess if could move outside
of current role (e.g., desire to move)
Action:
Assess mobility
Further assessment on demonstrated
leadership characteristics
Perhaps a coach if 1 or 2
potential areas are “derailers”
Communicate path… might influence
mobility or desire to move.
Recognize the exceptional performance
Delineate next career possibilities .
Action:
Development plan and accelerated
career path firmly in place.
Know their next two career steps.
Identify specifically
when they will move and why
Celebrate with them and challenge
them. They are our future!
Action:
Challenge to reach “Outstanding”
Assess if could move outside
of current role (e.g., desire to move)
Action:
Make a point to recognize
their specific, valued contributions
Action plan to ensure they are growing
within their role/potentially outside of it
Action plan for enhancing
demonstrated leadership characteristics
Action:
Set clear and specific performance
criteria
Assure person has tools, resources,
and information to be a success
Delineate next career steps given that
certain perf. criteria are met.
Performance - WHAT
Action:
Confirm and document assessment
of performance and demonstrated
leadership characteristics
Plan to have person in
new role or new company
within 3 months
Action:
3 month performance plan
Ensure focus is on performance
(e.g., no extra teams or assignments)
Make sure person has
tools/information/resources
to be a success
Action:
Set clear and specific
performance criteria.
Ensure person has tools, resources,
and information to be a success
Ensure successful
on-boarding process
Demonstrated Leadership Characteristics - HOW

22. SUCCESSION PLANNING - Are you ready for this?
Develop the Talent Pipeline.
Build new skills
Development plans for targeted staff members
Transfer the knowledge

23. How do we get that knowledge?

24. Types of Knowledge
Explicit knowledge - Knowledge that has been articulated, captured, or codified –“Written down”.
Implicit knowledge - Knowledge that can be articulated or captured but has not been codified.
Tacit Knowledge is inside of peoples’ heads or in the “Brains of Employees”. It has not been captured, so it has not been formalized or organized. This knowledge can not be easily accessed by other employees.

25. How do we transfer the knowledge?
KTM
Desk Manuals
Procedures
Documentation
Transfer
Training
Meetings
Cross Train
Explicit Knowledge
Formal
Structured
Unstructured
Implicit Knowledge
Unstructured
KTM
Capture and Codify
Knowledge Retained
Identify Knowledge
Type
Tacit Knowledge
Informal
Unstructured
Personal
Transfer
Face-to-face
Individual and group
KTM
Job Shadow
Interview
Mentor
Story-telling

26. What’s needed for future success?
Assess your talent
What are the gaps?
Develop the talent pipeline
Bench Strength Ready

27. SUCCESSION PLANNING - Are you ready for this?

28. SUCCESSION PLANNING - Are you ready for this?
?????
Thanks!